Showing posts with label Honeywell. Show all posts

Thursday, September 18, 2025

Here’s a tight, investor-ready snapshot of Honeywell (NASDAQ: HON) with the latest numbers and why Quantinuum + portfolio moves matter.

Honeywell — Investment/Business Report (as of Sept 18, 2025)

Executive summary

Honeywell is reshaping into three focused platforms—Aerospace Technologies, Industrial Automation, and Energy & Sustainability Solutions—and plans to separate Automation and Aerospace after spinning its Advanced Materials unit (“Solstice Advanced Materials”) in Q4-2025, targeting all separations by 2H-2026. Q2’25 results beat guidance; FY-2025 outlook was raised. Meanwhile, majority-owned Quantinuum completed a $600M round at a $10B pre-money valuation, adding explicit “option value” to HON’s sum-of-parts. Honeywell International Inc. Honeywell Honeywell+1

Recent financials & guidance

Q2’25: Sales $10.35B (+8% y/y; +5% organic); Adj. EPS $2.75 (+10% y/y). Segment margin 22.9%. Honeywell International Inc.
FY-2025 guidance (raised Jul 24, 2025): Sales $40.8–$41.3B; organic growth 4–5%; segment margin 23.0–23.2%; Adj. EPS $10.45–$10.65; FCF $5.4–$5.8B. Honeywell International Inc.+1
Portfolio actions (Q2’25 release): Closed $2.2B Sundyne acquisition; announced £1.8B Johnson Matthey Catalyst Technologies deal; completed $1.3B PPE business sale; considering strategic alternatives for Productivity Solutions & Services and Warehouse & Workflow Solutions. Honeywell International Inc.

Segment performance & demand signals (Q2’25)

Aerospace Technologies: +6% organic; strength in defense & space (+13%) and commercial aftermarket (+7%); backlog +16%. Honeywell International Inc.
Industrial Automation: Flat organic; Sensing & Safety +4%; pressure in European demand and W&WS projects. Honeywell International Inc.
Building Automation: +8% organic; margin 26.2% aided by the Global Access Solutions acquisition (LenelS2, Onity, Supra). Acquisition closed Jun 3, 2024 for $4.95B. Honeywell International Inc.+2Honeywell+2
Energy & Sustainability Solutions (UOP + Advanced Materials): +6% organic; UOP +16% on catalysts, gas processing licenses, sustainability backlog conversion. Honeywell International Inc.

Technologies, contracts, partners & customers (selected 2024–2025 items)

Aerospace/Avionics: multi-year avionics deal with LOT Polish Airlines for its 737 MAX fleet (deliveries from 2026). Vertical Aerospace deepened a long-term pact for VX4 air-taxi flight-control systems (deal potential up to $1B over a decade). Honeywell Aerospace+1
Quantum sensing (near-term): U.S. DoD TQS program awards—CRUISE and QUEST (MagNav)—to develop quantum-enabled navigation/magnetometry. Honeywell Aerospace+1
Access control & smart buildings: LenelS2/Onity/Supra added at scale via Carrier deal; supports Honeywell’s Building Automation growth and cross-sell into enterprise/real-estate. Honeywell
UOP & sustainability: Ongoing wins in petrochemical catalysts, gas processing, SAF/renewables flows highlighted in Q2 deck/PR. Honeywell International Inc.

Quantinuum (majority-owned) — why it matters to HON

Capital raise: $600M at $10B pre-money (Sept 4, 2025); new investors include NVIDIA’s NVentures, Quanta Computer, QED Investors; prior $300M round (Jan 2024) valued at $5B. Reuters+3Honeywell+3

Tech milestones: record quantum volume on H-Series and roadmap toward fault-tolerant systems; NVIDIA CUDA-Q integration; IPO chatter 2026–2027 depending on markets. Barron's+1
Implication for HON: clearer sum-of-parts uplift (explicit equity mark + eventual liquidity), expanded defense/industrial sensing funnels, and partnership halo with blue-chip investors (NVIDIA, JPMorgan, Mitsui, etc.). Reuters+1

Strategy & catalysts (next 6–18 months)

Separation roadmap: Spin of Solstice Advanced Materials targeted Q4-2025, followed by separation of Automation and Aerospace; full three-company structure targeted 2H-2026. Watch for Form-10/S-1 filings, capital structures, and dividend policies. Honeywell International Inc.
M&A integration: Sundyne and Catalyst Technologies synergy realization; cross-sell of Global Access Solutions into Building Automation. Honeywell International Inc.+1
Aerospace cycle: aftermarket strength + defense budgets; specific avionics/air-taxi certification milestones (LOT/Vertical). Honeywell Aerospace+1
Quantum milestones: Quantinuum “Helios” updates, large-enterprise wins, and any IPO/spin signals; policy grants/DoD-DOE awards for quantum sensing/compute. Barron's+1
FY-2025 delivery: hitting raised guide (sales, margin, EPS, FCF). Honeywell International Inc.

Risks

Execution on multi-step separations and integrations (Sundyne, Catalyst Tech; carve-outs). Honeywell International Inc.
Macro cyclicality (commercial aero, industrial automation projects) and Europe demand softness. Honeywell International Inc.
Quantum timing risk if commercialization lags expectations. (Industry-wide; mitigated by HON’s diversified earnings base.) Barron's

Valuation framing (qualitative)

With FY-2025 Adj. EPS $10.45–$10.65, HON trades at ~19–20× on the widget price above; premium supported by high-teens segment margins, strong FCF, and portfolio catalysts. A successful Quantinuum IPO could unlock incremental value beyond core industrial comps. Honeywell International Inc.

Bottom line

Honeywell’s core cash engines (Aerospace aftermarket/defense, UOP catalysts, Building Automation) are performing, guidance is higher, and management is simplifying the portfolio while adding targeted M&A. Overlay Quantinuum’s momentum and potential IPO, and you have a blue-chip industrial with structural re-rating catalysts and a quantum call option—tempered by separation/M&A execution and quantum timing risks. Honeywell International Inc.+1

Friday, June 13, 2025

Nuclear Fusion: Could it be the most important tech revolution since fire?

Several public companies are actively advancing fusion energy technology—some directly and others via investments, partnerships, or spinouts. Here’s a breakdown of the most relevant public companies, their role in fusion, and how far along they are:

🔬 Direct Fusion Developers (Public or Public via SPAC/IPO Route)

1. TAE Technologies (via potential IPO partner)

Not yet public, but may go public soon (rumored).
Partnered with: Google, Sumitomo, Chevron, and others.
Focus: Field-reversed configuration (FRC) fusion.
Stage: Late prototype phase (Norman machine tested; Copernicus under development).
Revenue: None (pre-commercial).

➡️ Closest public exposure: through Google (Alphabet - NASDAQ: GOOGL), which supports TAE’s AI modeling.

2. Helion Energy (indirect via Microsoft & OpenAI links)

Private, but has agreements with Microsoft (NASDAQ: MSFT) for power purchase starting 2028.
Backed by Sam Altman (OpenAI CEO) and funded over $600M+.
Stage: Working on its seventh prototype “Polaris” aiming for net energy in 2024–2025.
Approach: Pulsed, magneto-inertial fusion (deuterium-helium-3).

➡️ Indirect public exposure: through Microsoft’s deal & Nvidia’s AI involvement.

3. General Fusion

Still private, backed by Bezos Expeditions and Canadian government.
Uses magnetized target fusion (MTF).
Stage: Demo plant being built in the UK; not yet achieving net energy.

➡️ Public exposure via partners like Schneider Electric (EPA: SU) and potential future IPO.

⚛️ Public Companies with Fusion Stakes, Investments, or Tech Exposure

4. Alphabet (GOOG/GOOGL)

Invested in TAE Technologies since 2014.
Provides AI tools for modeling plasma physics.
Exposure is indirect, but increasing.

5. Chevron (NYSE: CVX)

Invested in TAE Technologies and Zap Energy.
Actively seeking clean energy diversification via fusion R&D partnerships.

6. Lockheed Martin (NYSE: LMT)

Has a Skunk Works compact fusion reactor program.
Approach: High-beta magnetic mirror machine.
Stage: Prototype still under wraps; unproven if scalable yet.

7. BWX Technologies (NYSE: BWXT)

Designs nuclear reactors and components; has contractual work supporting fusion R&D (including work with the U.S. DOE and national labs).
Strong positioning as a supplier for fusion devices in the long term.

🧪 Companies with Research or Supply Chain Roles

8. Honeywell International (NASDAQ: HON)

Involved in advanced materials, control systems, and diagnostics used in plasma and reactor control.
May benefit as a supplier or integrator.

9. Cameco (NYSE: CCJ / TSX: CCO)

World’s largest uranium supplier, and could benefit if tritium breeding becomes commercially viable in deuterium-tritium fusion.

🔮 Most Advanced Fusion Developers (Private, but IPO Possible Soon)

Company	Current Status	Energy Gain?	Target Deployment	Public Access
Helion Energy	Building Polaris	Expected 2024	By 2028 (MSFT deal)	Not yet, via MSFT
TAE Technologies	Developing Copernicus	No	2030s	Not yet, via GOOG
General Fusion	Demo plant building	No	~2030	Private
First Light Fusion	UK-based, uses projectile impact fusion	No	Late 2020s–2030s	Private

💡 Summary: Public Companies You Can Buy Now with Fusion Exposure

Company	Ticker	Role in Fusion	Development Stage
Alphabet	GOOG/GOOGL	TAE Technologies investor	R&D support
Microsoft	MSFT	Power-purchase deal w/ Helion	Commercialization target 2028
Chevron	CVX	Investor in TAE & Zap	Diversification into clean energy
Lockheed	LMT	Compact fusion R&D	Prototype-only
BWX Tech	BWXT	Component supplier	Steady nuclear work
Honeywell	HON	Controls & materials	Support role

If you're looking for direct exposure to pure-play fusion, no company is publicly listed yet—but Helion, TAE, and Zap Energy are the most likely IPO candidates in the next 2–3 years.

Here’s a two-part response for a potential fusion-themed investment portfolio, blending current public exposure with speculative positioning for future IPOs:

✅ PART 1: Fusion-Linked Public Portfolio Strategy (2025)

These companies either invest in fusion developers, supply critical technology, or stand to benefit from commercialization.

Ticker	Company	Role in Fusion	Allocation (%)	Rationale
GOOG / GOOGL	Alphabet	Investor in TAE Technologies	25%	AI support and early fusion R&D exposure through TAE. Also exposed to AI and quantum.
MSFT	Microsoft	Fusion power offtake agreement with Helion Energy	25%	First fusion-related energy buyer. Strong play on applied AI and commercial deployment.
CVX	Chevron	Investor in multiple fusion ventures	15%	Early mover among oil majors diversifying into fusion.
LMT	Lockheed Martin	Proprietary compact fusion project via Skunk Works	10%	High-risk, high-reward. Long R&D cycle.
BWXT	BWX Technologies	Supplier to DOE & nuclear fusion systems	10%	Strong play on infrastructure and manufacturing know-how.
HON	Honeywell	Systems integration, sensors, materials	10%	Likely supplier for industrialized fusion plants.
Cash or Bonds	-	For future IPOs or market volatility	5%	Hold for IPOs (TAE, Helion, General Fusion, Zap Energy).

🚀 PART 2: Speculative Fusion IPO Watchlist (2025–2027)

These private companies are furthest along in fusion and could IPO in the coming years:

Company	Approach	Why It Matters	IPO Outlook
Helion Energy	Magneto-inertial pulsed fusion	First to have utility contract (Microsoft); aims for net energy by 2025	High potential by 2026
TAE Technologies	Field-reversed configuration	Largest private funding, strong industrial partners (Google, Chevron, Japan’s Sumitomo)	IPO likely 2025–2026
Zap Energy	Sheared-flow stabilized Z-pinch	Ultra-simple architecture, compact reactor design	Later-stage, maybe 2026+
General Fusion	Magnetized target fusion	Backed by Bezos, demo plant in UK underway	May IPO via Canadian or UK route by 2026
First Light Fusion	Inertial projectile (UK)	Unique projectile fusion approach	May go public in London by 2025

🔮 Optional "Aggressive Edge" Plays

speculative bets:

Consider small positions in Nvidia (NVDA) for AI-modeling fusion physics and software.
Watch for Canadian defense or nuclear companies potentially supporting General Fusion (e.g., SNC-Lavalin / AtkinsRéalis).

📌 Final Thoughts

Short-term: Play the enablers (MSFT, GOOG, BWXT).
Mid-term: Watch for IPOs and allocate cash accordingly.
Long-term: If even one private fusion developer delivers commercial net-positive energy, valuations for all related names will re-rate.

Wednesday, January 1, 2025

Quantum Ai is said by some pundits, to be a decade away. Is it really? As Technology grows exponentially, we explore 12 leaders in the field!

The convergence of AI and quantum computing is an exciting frontier that could see significant developments in 2025. Here’s how advancements in 2025 might catalyze this union:

1. Quantum-Enhanced AI Models

Breakthroughs in Algorithms: Researchers are expected to refine quantum algorithms like Quantum Approximate Optimization Algorithm (QAOA) and Quantum Support Vector Machines, making them more applicable to real-world AI problems.
Hybrid Quantum-Classical Workflows: Companies might deploy hybrid models where quantum computers handle complex computations (like feature optimization) while classical systems process larger-scale AI tasks.
Generative AI: Quantum computers could accelerate training for generative AI models by reducing time for probabilistic sampling, a core process for generative adversarial networks (GANs) and transformers.

2. Hardware Synergies

Advances in Quantum Hardware: Improved qubit stability and coherence times will enable quantum computers to run more complex AI tasks.
AI-Assisted Quantum Development: AI can optimize the control of qubits and error-correction techniques, pushing quantum hardware toward scalability.
Edge Quantum Processors: Early prototypes of quantum processors integrated into cloud or edge AI systems could debut.

3. Enhanced Optimization and Problem-Solving
Optimization is D-Wave's specialty

AI + Quantum for Optimization: Industries requiring heavy optimization (e.g., logistics, finance, drug discovery) will adopt quantum-accelerated AI for solving previously intractable problems.
Energy Efficiency: Quantum AI could substantially reduce the energy required for training and running large AI models, addressing growing concerns about the carbon footprint of AI.

4. Real-World Applications
Healthcare will never be the same!

Healthcare: AI-powered quantum systems may revolutionize drug discovery by efficiently simulating molecular interactions and identifying optimal compounds.
Finance: Quantum-enhanced AI models for portfolio optimization, fraud detection, and risk assessment could become a key industry focus.
Materials Science: By combining AI’s predictive capabilities with quantum’s simulation strength, researchers can develop new materials for technologies like better batteries or advanced semiconductors. IE: A quantum battery is a type of electric battery that uses the principles of quantum mechanics to store energy. They have the potential to be more efficient and powerful than traditional batteries.
Quantum batteries are in the early stages of development.^{[1] Wikipedia}

5. Expanding the Ecosystem

Partnerships and Investments: Quantum computing startups (e.g., Rigetti, IonQ, PsiQuantum) will likely partner with AI giants like OpenAI, Google DeepMind, and IBM to drive integrated solutions.
Open-Source Development: Initiatives like Hugging Face for AI or IBM’s Qiskit for quantum may start offering toolkits that merge AI and quantum development environments.
Talent and Training: Universities and training platforms will increasingly offer interdisciplinary programs focused on quantum-AI integration.

6. Generative AI Meets Quantum Creativity

Quantum-Assisted Creativity: Generative models like ChatGPT or DALL·E might leverage quantum computing for exploring larger creative possibilities in art, music, and design.

Challenges That May Persist

Scalability: Scaling quantum systems to handle industrial-scale AI problems remains a major challenge.
Error Correction: Quantum systems still struggle with noise and errors, limiting their reliability. This is one of quantum's most immediate problems.
Integration Costs: High costs and infrastructure demands may delay widespread adoption of quantum-AI solutions. This may favor the giants over the up and comers!

In 2025, we can expect quantum and AI technologies to start building foundational synergies, with breakthroughs coming in hardware, algorithms, and applied fields. Although full convergence may still be years away, this period will mark critical milestones in their integration.

Google and IBM are leading the Qai race!

Several companies are actively working at the intersection of AI and quantum computing, aiming to create breakthroughs that unite these transformative technologies.

Here's a look at 10 of the leading players:

1. Google (Alphabet)

Why They're Leading: Google has made significant strides in both quantum computing (with Sycamore, their quantum processor) and AI (via Google DeepMind).
Recent Developments:
- Google's AI and Quantum teams are collaborating to explore quantum advantage for AI workloads.
- DeepMind researchers are investigating quantum-inspired algorithms to enhance neural networks.
Key Goal: Use quantum systems to optimize large-scale AI models and solve combinatorial AI problems.

2. IBM

Why They're Leading: IBM is a pioneer in both quantum (IBM Quantum) and AI (Watson AI).
Recent Developments:
- Released Qiskit Machine Learning, a quantum library for AI model development.
- Collaborating with industries like healthcare and finance to develop hybrid quantum-AI solutions.
Key Goal: Integrate quantum capabilities into IBM Watson to boost decision-making and optimization.

3. Microsoft

Why They're Leading: Microsoft Azure Quantum and Azure AI are already part of the same ecosystem, enabling hybrid workflows.
Recent Developments:
- Developing quantum-inspired optimization algorithms for AI applications.
- Focus on integrating quantum simulators with Azure cloud AI tools.
Key Goal: Provide cloud-based platforms that seamlessly combine AI and quantum technologies.

4. IonQ
Illustration of IONQ's new Quantum facility
in Seattle

Why They're Leading: IonQ is focused on deploying quantum systems for practical AI tasks.
Recent Developments:
- Partnered with companies like Amazon and Microsoft to integrate their quantum processors with existing AI cloud tools.
- Their focus includes AI-enhanced quantum error correction and optimization problems.
Key Goal: Make quantum-AI integration accessible through cloud and hybrid workflows.
In November 2024, IonQ demonstrated an end-to-end application workflow leveraging NVIDIA's CUDA-Q platform alongside its quantum hardware. This collaboration aims to make quantum acceleration as accessible as GPU acceleration for on-premises and hybrid deployments, particularly in applications like molecular modeling relevant to pharmaceuticals.

5. Nvidia
Quantum Simulation Nvidia

Why They're Leading: Nvidia is advancing AI with its GPUs and exploring quantum computing through partnerships and simulation tools.
Recent Developments:
- Developing quantum simulators optimized for AI workloads.
- Collaborating with quantum companies to create quantum-AI development frameworks.
Key Goal: Build hardware and software bridges between AI training processes and quantum systems.

6. Rigetti Computing

Why They're Leading: Rigetti focuses on practical quantum applications, including AI.
Recent Developments:
- Collaborating with DARPA to explore quantum-enhanced machine learning.
- Developed hybrid quantum-classical frameworks for AI applications.
Key Goal: Push quantum integration into applied AI domains like healthcare and logistics.

7. PsiQuantum

Why They're Leading: PsiQuantum is developing photonic quantum computers, with a strong focus on large-scale AI applications.
Recent Developments:
- Highlighted the potential for their photonic systems to simulate AI models more efficiently.
- Building systems geared toward high-dimensional optimization problems.
Key Goal: Create scalable quantum systems that can accelerate AI at industrial levels.

8. Amazon (AWS)

Why They're Leading: AWS Braket (quantum) and Amazon's AI services operate within a unified cloud infrastructure.
Recent Developments:
- Launched hybrid services that allow developers to combine quantum and AI workflows.
- Experimenting with quantum-enhanced natural language processing (NLP) for AI services.
Key Goal: Provide a developer-friendly platform for quantum-AI experimentation and deployment.

9. Xanadu

Why They're Leading: Xanadu’s quantum machine learning library (PennyLane) has been instrumental in quantum-AI research.
Recent Developments:
- Focused on creating quantum algorithms for deep learning and reinforcement learning.
- Partnered with global research institutions to advance quantum-AI hybrid models.
Key Goal: Democratize access to quantum-enhanced AI tools for researchers and developers.

10. C3.ai

Why They're Leading: While primarily an AI company, C3.ai is exploring partnerships with quantum computing firms to enhance AI efficiency.
Recent Developments:
- In discussions to leverage quantum technology for generative AI and large-scale data optimization.
Key Goal: Use quantum computing to create competitive differentiation in enterprise AI solutions.

Emerging Contenders:

D-Wave: Specializing in quantum annealing for optimization-heavy AI tasks.
D-Wave has recently formed a strategic partnership with Staque, a consulting and development firm specializing in AI, blockchain, and quantum computing. This alliance aims to accelerate the adoption of annealing quantum computing across the Middle East, focusing on optimization and AI applications.
D-Wave Systems
The partnership was announced during Qubits UAE in Dubai, a segment of D-Wave's annual user conference, highlighting the growing interest in quantum computing solutions within the region. Together, D-Wave and Staque plan to assist clients in developing and deploying quantum and hybrid quantum applications tailored to specific industry needs.
D-Wave Systems
This collaboration underscores D-Wave's commitment to expanding its global presence and fostering the integration of quantum computing technologies in diverse sectors.
OpenAI:

Potentially leveraging partnerships with quantum startups to future-proof its AI models. (Now a question, which Quantum startup might Open Ai choose....hmmmm!)

These companies are at various stages of integrating quantum and AI, with strong momentum expected in 2025 as hybrid systems and practical applications emerge.

ED Note:

We are now long GOOG, IBM, IONQ, QBTS AI and HON

PP: We bought Honeywell for it's ownership of Quantinuum

Why Quantinuum Matters

Unique Positioning:
- Quantinuum is a merger between Honeywell Quantum Solutions and Cambridge Quantum, making it one of the largest and most well-rounded quantum computing companies globally.
- Its work spans quantum hardware, software, and applications, including a strong focus on AI.
AI + Quantum Integration:
- tket: Quantinuum's quantum software stack supports hybrid quantum-AI workflows, making it easier for researchers to integrate quantum computing into AI applications.
- They have actively explored quantum machine learning, particularly in areas like natural language processing (NLP) and data optimization.
Recent Collaborations:
- Quantinuum has worked with leading AI companies and researchers to demonstrate the potential of quantum computing in enhancing AI tasks like data clustering and predictive modeling.
- Their tools are widely used in AI research, with partnerships in fields like drug discovery (Pfizer) and materials science (BMW).
Generative AI and Cybersecurity:
- Quantinuum has applied quantum technology to secure AI-generated content and enhance cybersecurity—a growing concern in generative AI.

Like it's competitor, IONQ, Quantinuum is also a leader in Trapped ION Technology!